On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,180,000. During 2021, costs of $2,060,000 were incurred with estimated costs of $4,060,000 yet to be incurred. Billings of $2,560,000 were sent, and cash collected was $2.310,000. points In 2022, costs incurred were $2,560,000 with remaining costs estimated to be $3,690,000. 2022 billings were $2,810,000 and $2,535,000 cash was collected. The project was completed in 2023 after additional costs of $3,860,000 were incurred. The company's fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion ebook Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2021 2022, and 2023 using the percentage of completion method. 2a. Prepare journal entries for 2021 to record the transactions described (credit various accounts for construction costs incurred). 2b. Prepare journal entries for 2022 to record the transactions described (credit various accounts for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022 References Reg Req2A Req2B Reg 3A Reg 3B Compute the amount of revenue and gross profit or loss to be recognized in 2021 2022 and 2023 using the percentage of completion method. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Round your final answers to the nearest whole dollar.) points - % complete to date Percentages of completion Choose numerator + Choose denominator Actual costs to date Estimated total costs 2,060,000 $ 6,120,000 4,620,000 $ 8,310,000 8,480,000 $ 8.480.000l 2021 = 33.6601% eBook 2022 $ 55.5957% 100.0000% 2023 2021 References To date Recognized in prior years Construction revenue Construction expense Gross profit (loss) $ $ $ 2,753,399 2,060,000 693,396 $ $ $ 0 0 0 $ $ $ Recognized in 2021 2,753,399 2,060,000 693,396 To date 1 $ 4,547,728 Construction revenue Construction expense Gross profit (loss) 2022 Recognized in prior years $ 2,753,396 $ 2,060,000 $ 693,396 Recognized in 2022 1,794,332 (2,060,000) (693,396) $ $ $ r 2022 To date Recognized in prior years 4,547,728 $ Construction revenue Construction expense Gross profit (loss) 8,180,000 8,480,000 Recognized in 2023 3,632,272 8,480,000 (300,000) (300.000) Req1 Req 2A Req 2B Req 3A Req 3B Prepare journal entries for 2021 to record the transactions described (credit "various accounts for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round intermediate calculations, Round your answers to the nearest dolla points View transaction list View journal entry worksheet No Credit Year 2021 General Journal Construction in progress Various accounts Debit 2,060,000 11 eBook 2,060,000 2021 2,560,000 References Accounts receivable Billings on construction contract 2,560,000 2021 2,310,000 Cash Accounts receivable 2,310,000 4 2021 2,060,000 Cost of construction Construction in progress Revenue from long-term contracts ( Req1 Reg 28 > Complete this question by entering your answers in the tabs below. Req1 Reg 2A Reg 2A Req 2B Req 2B Req 3A Req3A Req 3B 23 points Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021. (Do not round intermediate calculati to the nearest dollar amount.) eBook Balance Sheet (Partial) At December 31, 2021 Current assets: Accounts receivable Costs and profit in excess of billings $ References 250,000 193,399 Current liabilities:
